fasb asc 842 Consulting
compliance & implementation
In 2016, FASB released ASC 842, a significant update to its requirements around lease accounting. Two seemingly short years have passed, and now the deadline for compliance is only a few months away (for public companies). ASC 842 is a landmark change in lease accounting and will impact many companies.
The Challenges of Implementing ASC 842
ASC 842 will completely change how companies handle lease accounting for all leases (from equipment to real estate and beyond). Aligning with this standard will create new challenges for accounting departments:
- Assessing and managing leases accurately and efficiently
- Reporting on proper accounting treatment and disclosures
- Choosing and implementing the right lease management system
- Aligning accounting policies and procedures with the new requirements
- Finding the resources to manage the implementation and compliance projects
To meet the new requirements of ASC 842, many companies may need to implement a leasing system that minimizes the burden on accounting employees and makes compliance management simple. But choosing the right system and integrating it into the business is no easy task.
How Focal Point Can Help
Focal Point can help your company through every step of compliance with ASC 842, providing the level of support your organization needs. Whether it's leading a full implementation effort or supporting your team, we are here to help you achieve a successful, timely, and sustainable implementation. Our capabilities include:
- Analyzing current leases under the new guidance and quantifying the impact as of the implementation date, including required disclosures.
- Drafting technical memos to document management's implementation and compliance strategy and findings.
- Re-engineering policies, processes, internal controls, and procedures to align them with ASC 842.
- Providing training to accounting professionals on how to analyze new leases under ASC 842 to ensure ongoing compliance.
- Assisting in the selection of a leasing system that fits your organization's unique needs and environment.
- Helping you manage a project of this size and keep the implementation on time and on budget.
Our team is prepared to help you build a robust ASC 842 compliance program by January 1, 2019 (or 2020 for private companies). Complete the short form on the right and one of our experts will be in touch soon to see how we can help.
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